CAPABILITY EXCELLENCE
One of the main goals of the supply chain arm of Coca-Cola is to have every customer receive tailored services from the system, whether that customer is in New York City, Tokyo or a rural area in an isolated part of the world.
“We have 16 million retail outlets around the world that sell Coca-Cola [products], and we have to have common practices, processes and capabilities no matter where we operate in the world,” Buffington explains. “We do direct store delivery to more than 10 million of those [retail outlets]. We make sure we get the product on the shelves in a consistent way from a quality and collaborative standpoint, doing it very efficiently by leveraging our global best practices and building capabilities at the local level.”
Although Coca-Cola is a global company, its products never travel far to reach the final consumer, making it a local company in each market where it operates. “Our business is a local business,” Buffington relates. “We typically don’t ship Coca-Cola more than a few hundred miles; it’s all about being responsive to the customer’s needs and the local tastes of the consumers in every market.”
This approach is what Buffington calls a customer-driven supply chain. “Coca-Cola is the same formula everywhere in the world,” Buffington notes. “The concentrate comes from a few places around the world, so we’re pulling from the same global commodity pool, but we still have to understand the individual customer requirements.”
On the commercial side, Coca-Cola works with its customers in what it calls “brand, pack, price, channel architecture,” determining what packages to order, what equipment to use and what service requirements will deliver the picture of success the client has in mind. “How you serve a hypermarket such as Carrefour or Wal-Mart is quite different to how you service a mom and pop in a rural area,” Buffington says. “Our supply chain starts at the shelf, and with customer service design, that is how we’re demand-driven.”
The logistics flow of the supply chain enables the company to tailor its services to its clients’ needs. “It’s all in our demand and supply planning and in our sales operations planning,” Buffington explains. “Planning supply is driven by forecasted customer demand input, seasonality and also by promotions or changes in merchandising in the store.”
Coca-Cola’s diverse portfolio and package mix is geared to meet its diverse consumers’ and customers’ preferences. “Some customers are primarily take-home for future consumption and some are very immediate consumption, on premise,” Buffington says. “Many customers offer a large range of products, so you need packaging at different price points and multi-packs; the portfolio needs to be wide enough to serve all the beverage needs.”
CAPABILITY EXCELLENCE
One of the main goals of the supply chain arm of Coca-Cola is to have every customer receive tailored services from the system, whether that customer is in New York City, Tokyo or a rural area in an isolated part of the world.
“We have 16 million retail outlets around the world that sell Coca-Cola [products], and we have to have common practices, processes and capabilities no matter where we operate in the world,” Buffington explains. “We do direct store delivery to more than 10 million of those [retail outlets]. We make sure we get the product on the shelves in a consistent way from a quality and collaborative standpoint, doing it very efficiently by leveraging our global best practices and building capabilities at the local level.”
Although Coca-Cola is a global company, its products never travel far to reach the final consumer, making it a local company in each market where it operates. “Our business is a local business,” Buffington relates. “We typically don’t ship Coca-Cola more than a few hundred miles; it’s all about being responsive to the customer’s needs and the local tastes of the consumers in every market.”
This approach is what Buffington calls a customer-driven supply chain. “Coca-Cola is the same formula everywhere in the world,” Buffington notes. “The concentrate comes from a few places around the world, so we’re pulling from the same global commodity pool, but we still have to understand the individual customer requirements.”
On the commercial side, Coca-Cola works with its customers in what it calls “brand, pack, price, channel architecture,” determining what packages to order, what equipment to use and what service requirements will deliver the picture of success the client has in mind. “How you serve a hypermarket such as Carrefour or Wal-Mart is quite different to how you service a mom and pop in a rural area,” Buffington says. “Our supply chain starts at the shelf, and with customer service design, that is how we’re demand-driven.”
The logistics flow of the supply chain enables the company to tailor its services to its clients’ needs. “It’s all in our demand and supply planning and in our sales operations planning,” Buffington explains. “Planning supply is driven by forecasted customer demand input, seasonality and also by promotions or changes in merchandising in the store.”
Coca-Cola’s diverse portfolio and package mix is geared to meet its diverse consumers’ and customers’ preferences. “Some customers are primarily take-home for future consumption and some are very immediate consumption, on premise,” Buffington says. “Many customers offer a large range of products, so you need packaging at different price points and multi-packs; the portfolio needs to be wide enough to serve all the beverage needs.”
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